RE: 20-30 bags on a single notable contract RNS doableToday 12:49
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· Following the successful delivery of the $1.05 million contract with the Tier-1 U.S. aerospace customer, Ethernity received an additional order from the customer in March 2025 valued at $290,000.
· In the first four months of 2025, total cash collections are expected to be approximately $700,000.
· One of Ethernity's royalty-based customers has successfully completed the initial deployment of several thousand units as stipulated in their agreement. As a result, the Company anticipates an overall increase in royalty payments during 2025 compared to 2024.
· As previously announced, the Company will be required to raise additional funds in order to settle its payment obligations under the creditor settlement plan and to progress its potential ASIC business, as detailed further below, and is currently exploring a number of options to raise such funds.
Update on Ethernity's strategy and the potential ASIC opportunity
The world of semiconductor innovation is rapidly evolving. At the heart of this transformation lies the surging interest and adoption of application-specific integrated circuit ("ASIC") design services. Across industries, companies are waking up to the competitive benefits of tailored chip designs-driven by the demand for faster, smarter, and more energy-efficient electronic solutions.
ASICs are no longer just for large corporations with significant budgets; they're becoming an essential ingredient for companies of all sizes seeking unique advantages in their markets. Several mega-trends are contributing to the rise in customer demand for highly specialized ASICs, including the need for improved performance, power, energy efficiency, miniaturization and improved integration, together with a reduced total cost of ownership.
As a result, the Company is actively working to transform its operations into a semiconductor business. Ethernity aims to develop an Application-Specific Standard Product ("ASSP") tailored for the global Telecom Access market, leveraging its existing FPGA-based UEP-2025 solution. To support this initiative, the Company is seeking a lead OEM partner to co-fund the ASIC non-recurring engineering (NRE) costs under a partnership arrangement. This arrangement would enable the Company to commercialize the ASSP and offer it to additional vendors across the industry.
The Company is currently in discussions at varying levels of advancement with four leading Western wireless vendors, collectively representing roughly half of the global wireless backhaul market, that have expressed an interest in this ASSP solution, where the aggregate volume from the four vendors could potentially generate a business volume of up to 400,000 units per year.
Whilst no formal agreements have been entered into to date, the Directors consider that Ethernity is making promising progress with one of the wireless vendors.